Aramco Q2 Profit Surges 33% as Iran War Tightens Oil Supply

Saudi Aramco reported a strong financial performance for the second quarter of 2026, with adjusted net income rising 33% year over year to 125.2 billion Saudi riyals (US$33.4 billion). The earnings exceeded analysts’ expectations of US$31.59 billion and reflected the impact of elevated crude oil, refined fuel, and chemical product prices during the April–June period.

The company’s results came amid heightened geopolitical tensions in the Middle East, particularly the ongoing conflict involving Iran, which disrupted shipping activity through the Strait of Hormuz. The strategic waterway, one of the world’s busiest oil transit routes, experienced severe supply interruptions, pushing global energy prices higher and boosting revenues for major oil producers.

To minimize the impact of the disruptions, Aramco relied on its 1,200-kilometer East-West pipeline, which connects its oil facilities to export terminals on the Red Sea. This route allowed the company to bypass the Strait of Hormuz and maintain export operations at a maximum capacity of 7 million barrels per day. The alternative export corridor enabled Aramco to preserve production continuity and meet customer demand despite the challenging regional situation.

During the quarter, cash flow from operating activities reached US$25.4 billion, demonstrating the company’s continued ability to generate strong earnings despite market volatility. Aramco’s gearing ratio increased to 6.2% at the end of June from 4.8% at the end of the first quarter, reflecting changes in its capital structure while remaining at relatively manageable levels.

Aramco President and CEO Amin H. Nasser stated that the company successfully maintained business continuity despite the unprecedented disruption in the Strait of Hormuz. He highlighted the importance of Aramco’s diversified asset base, extensive storage facilities, export terminals, and decades of infrastructure investment, particularly the East-West pipeline, which provided operational flexibility during the crisis. He added that the company sustained production and exports while continuing to advance major projects across its portfolio.

The company also announced that its board approved a second-quarter base dividend of US$21.9 billion, which will be distributed over the next three months, reaffirming Aramco’s commitment to delivering returns to shareholders.

According to the company, the increase in quarterly revenue was primarily driven by higher realized prices for crude oil, refined petroleum products, and chemical products. However, the positive pricing environment was partially offset by lower sales volumes of crude oil as well as refined and chemical products during the reporting period.

Impact on Chemical Commodity Prices Tracked by ChemAnalyst

The rise in crude oil prices and supply disruptions are expected to strengthen pricing across several chemical commodities tracked by ChemAnalyst. Petrochemical feedstocks such as Naphtha, Propylene, Ethylene, Benzene, Toluene, Mixed Xylene, and Butadiene could witness upward price pressure due to higher feedstock costs. Downstream polymers including Polyethylene (HDPE, LDPE, LLDPE), Polypropylene, Polystyrene, PVC, PET, and synthetic rubbers may also record price gains as production expenses increase. Refined fuels such as diesel, gasoline, and jet fuel are likely to remain elevated, while fertilizer inputs derived from hydrocarbons may also experience firmer pricing if geopolitical tensions continue to constrain regional energy supplies.